Sunshine Coast builder collapses leaving $1m trail of debt

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Mr Nogueira said the firm's demise may have been caused by a decline in demand for its kit home product.

A meeting of creditors will be held at Worrells, Maroochydore, on October 9.

Mr Nogueira said Worrells had experienced a run of construction industry collapses during the past six months that had involved building, flooring and roofing companies. Bush and Beach Homes went into liquidation earlier this year.

Desu's liquidation came as the Senate Inquiry into Construction Industry Insolvency heard evidence this week in Melbourne.

A spokesman for inquiry member Senator Doug Cameron said it heard evidence that Walton Construction, which collapsed in October, 2013, with debts now totalling more than $80 million had been trading while insolvent since mid 2012.

The spokesman said Walton's banker, the NAB, would be called to give evidence at the final hearing on November 27 in Canberra.

He said consideration was now being given as to whether evidence provided in camera on Tuesday by representatives of the Mawson Group, Walton's business advisor recommended by the NAB, would be made publicly available.

Meanwhile, the Queensland Government and ASIC-funded public examination into the Walton collapse is not now expected to be held before the New Year.

Liquidator Michael McCann of Grant Thorton said the delay had been caused by difficulties gathering all relevant documents.